After more than a decade of delays and negotiations, Tanzania’s Bagamoyo Port project is finally moving forward. Last week, the Tanzania Ports Authority (TPA) announced that Africa Global Logistics (AGL), a subsidiary of global shipping giant MSC, will design, construct, and operate the first three berths at the port.
“We expect construction of the three new berths at Bagamoyo to begin early January,” said Plasduce Mbossa, TPA’s Director General. “We welcome more local and international investors to join the project, which aims to bring major transformation to port operations in Tanzania.”
The memorandum of understanding (MoU) signals a major step in reviving the project, which has faced repeated setbacks since its launch in 2013. Initially envisioned as a flagship project under China’s Belt and Road Initiative (BRI), the project was canceled in 2019 by the late President John Magufuli, citing what he described as exploitative terms, including massive tax exemptions demanded by China.
Following President Samia Suluhu Hassan’s ascension in 2021, negotiations for the port were restarted, with the government labeling it a national priority. The involvement of AGL now reflects a strategic pivot from a Chinese-led to a European-led initiative, coinciding with MSC Group’s expanding footprint in African port operations through its terminal arm TIL and logistics subsidiary AGL.
AGL has increasingly participated in port expansion projects across Africa, including in the Republic of Congo, Angola, Namibia, and Ivory Coast. Its investment in Bagamoyo is expected to enhance access to multiple African markets, leveraging the port’s strategic location along the Indian Ocean.
Planned as a $10 billion mega-project, Bagamoyo Port aims to include 28 berths, a special economic zone supporting up to 760 industrial facilities, and an annual container capacity of 20 million TEUs—25 times the capacity of Tanzania’s existing Dar es Salaam Port. Situated just 42 miles north of Dar es Salaam, the port is designed to alleviate operational constraints and congestion at the current gateway.
The new port also positions Tanzania to compete with Kenya’s Lamu Port, a greenfield facility that has recently seen increased traffic following realignment of liner schedules. Lamu Port, commissioned in 2021, recorded a historic nine ship calls in August this year, highlighting growing regional competition.
Construction at Bagamoyo is expected to begin in January 2026, marking a new chapter for Tanzania’s maritime infrastructure ambitions.
